Uniswap “takes on Coinbase and Binance” while UNI jumps 30% – will the rally last?

Key Takeaways:

  • UNI/USD exchange rate jumped 30% in 5 days.
  • The technical analysis suggests a looming decline.
  • Uniswap aims to "take on Coinbase and Binance."
Uniswap "takes on Coinbase and Binance" while UNI jumps 30% - will the rally last?
Uniswap “takes on Coinbase and Binance” while UNI jumps 30% – will the rally last?

YEREVAN (CoinChapter.com) — Decentralised crypto exchange Uniswap saw its token UNI rally 30% since Sep. 22 and stand at $6.7 on Sep. 27. However, due to technical indicators, the bullish phase might fizzle out soon.

UNI jumps 30% in 5 days but could stall shortly

In detail, the UNI/USD price action retested a significant support line on Sep 21, which has assisted on multiple occasions since May 2022. However, after the 12% jump on Tuesday, the digital asset retested a resistance line in the European hours.

Uniswap (UNI) rallies 30% in 5 days. Source: TradingView.com
Uniswap (UNI) rallies 30% in 5 days. Source: TradingView.com

Considering the retest, the chances of closing the session below the said line were relatively high. Additionally, the general decline in the daily trading volumes suggested that UNI bulls might not put enough weight behind the rally, sending the token into a downward correction.

Meanwhile, the reasons behind the surge are noteworthy.

Uniswap plans market domination

Uniswap made its “top priority” to siphon funds from centralized exchanges such as Coinbase and Binance, said the company’s COO, Mary-Catherine Lader, during the Messari Mainnet conference in NY on Sep 22.

Moreover, she pointed out that the company behind the exchange has its eye on “several new products” to continue growing Uniswap’s market share. For example, in June 2022, Uniswap bought NFT aggregator Genie, which, in hindsight, pushed the exchange’s diversification.

Lader also commented on the purchase, emphasizing the decision’s utility.

So you can buy and sell NFTs on OpenSea, but starting later this fall—I don’t want to say exactly when—you’ll be able to buy and sell NFTs on Uniswap from a number of different marketplaces. Our hope is that that brings your digital asset experience into one place, one-stop.

said the COO in an interview to Decrypt.

As a result, Uniswap’s daily trading volume reached $1.12 billion on September 24 but subsequently declined, settling at around $972 million on Sep. 27, with a 64% daily increase. The exchange’s decentralized market dominance stood at just above 54%, spurring the UNI token into a rally.

Uniswap daily trading volume and market dominance. Source: DeFiLlama.com
Uniswap daily trading volume and market dominance. Source: DeFiLlama.com

For further information on Uniswap’ rival’ exchanges like Binance and why the crypto community attempts to boycott it, click here.

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Uniswap, Uniswap “takes on Coinbase and Binance” while UNI jumps 30% – will the rally last?

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